Overview Taxation for Residents Taxation for Non-residents Tax Treaty Securities Transaction     Tax and Others Home > Investment Guide > Taxation > Taxation for Non-Residents  Taxation for Non-Residents and Foreign Corporations The taxation of non-resident individuals and foreign corporations depends on whether they have a permanent establishment (i.e., business facility such as an office building or factory) in Korea. · Non-residents in Korea are individuals without a permanent address or have not resided in   Korea for at least one year. · Foreign corporations are those which have the head office in foreign country.  Income Tax Non-resident individuals and foreign corporations are liable for tax on income derived from sources within Korea. Two kinds of taxation are applied: global taxation and separate taxation. · Global taxation is applied to non-resident taxpayers and foreign corporations who have a place   of business or income from real estate located in Korea. · All domestic source income is subject to global taxation, except for retirement income, capital   gains, and timber income, all of which are taxed in the same manner as they would be   if earned by a resident.   Withholding taxation is applied to each domestic item of income of non-residents and foreign corporations who do not have a place of business in Korea and do not have income from real estate located in Korea. · Unless otherwise provided in an applicable tax treaty, a person paying an amount of   income from domestic sources to non-residents (excluding non-residents having real estate   income or timber income) not attributable to a domestic business place, will withhold as income   tax at source of the income enumerated below. · The tax withheld must be paid to the government by the tenth day of the following month in   which such tax was withheld. [Taxation on Non-residents and Foreign Corporations without a Fixed Base]   Items Withholding Tax Rate* Interest 25 percent Dividend 25 percent Capital gains from securities transaction Lesser of 10 percent of the amount payable or 25 percent of the gain on such a sale *Note: 10 percent of income tax is added to the rate as resident tax